No. 21.
Mr. Osborn to Mr. Frelinghuysen

[Extract.]
No. 37.]

In consequence of two questions which have arisen between Brazil and the Republic of Uruguay their relations have become somewhat strained.

It is claimed by this government that in November of 1880 a battalion of Uruguayan cavalry which was employed in the Uruguayan province of Tuacarembo pressed into the military service a considerable number of Brazilian citizens, five of whom were, with the approval of the commander of the force, Lieutenant-Colonel Santos, brutally and without cause put to death. During the past year a vast deal of testimony has been taken by the Brazilian consul-general in Montevideo, all tending to sustain this general charge.

The Uruguayan authorities, at the solicitation of the Brazilian legation in Montevideo, undertook an investigation of the charges, and the result has recently been laid before this government. The commission intrusted with the inquiry conclude that the complaint is groundless, and the Uruguayan Government, in forwarding the determination here, express the hope that the incident may be regarded as at an end. The Brazilian Government, however, do not appear to be content to let the affair drop. They are confident of the truth of the allegations made, [Page 31] and seem inclined to urge upon the republic the punishment of the offenders; but I fail to discover any indications of a disposition upon their part to press their view of the matter to the extent of interrupting their friendly relations with their comparatively defenseless neighbor.

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The other question has reference to financial transactions between the two governments. It is conceded, I believe, that Uruguay is indebted to Brazil on account of advances made at various times to the extent of some millions of dollars, but I am not sure that they agree as to the exact condition of the account. According to the Brazilian claim the debt now amounts to about nine millions, the major part of which is for interest. This government has been urging an adjustment of the matter, and some steps have been recently essayed by the Uruguayan legation here, having apparently that object in view; but I am not aware that anything approaching an understanding has been reached.

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The government professes to believe that these questions will ultimately be amicably arranged. They disclaim any purpose of an attempt to enforce their demands by other than peaceful means, and I know of no reason for distrusting their sincerity. There is, it is true, some sentiment here which would justify a bold movement, having for its object the forced absorption of Uruguay, but it has not reached dangerous proportions. The present government have expressed themselves quite emphatically in opposition to any step in that direction, and I do not doubt that they have correctly interpreted the will of the nation. In addition to the causes which I have enumerated, it is urged in support of the said policy that the government of the republic is weak and inefficient to the extent of being incapable of performing its proper functions. There are some forty thousand Brazilians in the northern portion of the republic. These people and their property, it is claimed, receive no efficient protection at the hands of the government. It is also urged that the recklessness of that country, in its dealings with foreigners and foreign interests, is liable at any moment to produce a war in which this government might find it difficult to maintain a position of neutrality; that its existence is a constant menace to peace in this part of the world; and that the only effectual remedy for these evils is a destruction of its nationality.

There are those, too, who profess to believe that the interests of civilization would be subserved by a forced division of that country between Brazil and the Argentine Republic. This scheme has been quietly discussed by some of the prominent politicians of the country, but as yet there are no indications that it would meet with favor at the hands of this government, even if it should be acceptable to the Argentine Republic. The minister of foreign relations, in the course of a response to an interpellation in the House of Deputies a few days ago, approached this subject very delicately, and apparently with much caution, measuring his words, deprecated its public discussion, asserting at the same time that Brazil was disposed to observe her treaty obligations with Uruguay, and was not anxious for territorial acquisition in that quarter.

It has occurred to me, however, that the day may come when the republic will propose to pay its debt to the empire with territory. The policy of accepting such a proposition would undoubtedly find many influential advocates here, and it is possible that the government might feel inclined to give it a favorable consideration. Just how far the President of the United States ought to acquiesce in a voluntary transfer by an American republic of its domain to a monarchical power [Page 32] presents, I apprehend, a question of no slight moment. There may be no occasion for its consideration on account of the situation here, and yet I shall not be surprised if the contrary proves to be true.

I have, &c.,

THOMAS A. OSBORN.